S&P puts Swissport on watch

S&P said it placed all its Swissport Group Sarl ratings on CreditWatch with negative implications.

In April, the company hired advisors and is evaluating its options to handle liquidity issues.

“One option is to issue up to €380 million of super senior secured debt via either the consent solicitation or the scheme of arrangement. This proposed debt would take priority over the collateral claims of the existing senior secured debt. In our view, this would effectively lower the ranking of the senior secured debt claims under a distressed amendment, and therefore would be tantamount to a default if issued,” S&P said in a press release.

If the company issues the super senior debt, S&P said it expects to downgrade Swissport to SD.

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